I can't speak to your market, but here in NJ, our price for reserving a spot was $2k. Then 20% on Day 1, the rest on various payouts over the 6 months till completion.

10-20% and I would not bat an eye, but 60%? I am in N Texas. I get it that everyone in construction in this area has more work than they need, but I can't imagine the hassle of trying to get my money back if the work turns out to be substandard or months further down the line than promised. Maybe I am overly cynical, but there are stories out there all the time of people doing their homework on contractors and still getting screwed. $100,000 is more than I am willing to risk. Maybe I am answering my own questions...

Katie,regardless what his ratings are on houzz,do not up front more than you can afford to lose. You could easily be bankrupted and hung out to dry. If he has that many glowing reviews,let's see how many satisfied clients step forward to tell you what they liked best about him and his work. If you still want this contractor after meeting satisfied customers and seeing finished projects,use an escrow agent. Ask your attorney or banker about acting as middle man. The fee is reasonable if not free. If all else fails,how far are you from McKinney?

I am in Grapevine. Thank you so much for the info. I almost wish he hadn't had such great ideas. We have one more to meet with in about 2 weeks. I will do a lot of homework between now and then.

I really do love this site.

I don't care how much research you have done on a contractor, all the information you will find is on his past performance. Just like the small print on all the financial marketing, past results are not a guarantee of future performance.

My partner and I use the phrase "get hit by the big yellow bus" Under normal circumstances, your money would likely be safe but what if that person gets hit by the big yellow bus? Or, something horrible happens in his personal or business life that puts him out of commission for several months? Who knows if he would dig into that advance payment to see himself through some emergency. Of course, it wouldn't be expected, but desperate people do desperate things.

I like the above idea about an escrow agent. Some intermediary would be required before I would give some new person 2/3 of the projected cost before I had seen a lick of work.

That is a good analogy.

Grapevine has been growing since DFW International built there but there are enough contractors to keep up with demand. Don't count this contractor out if you like his ideas. Just make sure everyone is protected. As Linda pointed out,the contractor can be good as gold and things still jump tracks. However I will say this as a matter of opinion,if he even hint's reluctance to using an escrow,drop him. Grapevine is only a stone's throw from McKinney. If you wind up hiring subs rather than turning it over to a GC,let me know ( I'm subscribed),I can refer an electrician with verifiable references you will not believe.

I will certainly keep that in mind!

Hi

Here we have a law that states the deposit can not be higher than 6.5% of the contract and that progress claims (payments) are made monthly (% of each trade completed) or in stages (eg slab down, walls up, roof on, fit out) but always AFTER the work has been done.

It is built into the Contracts.

I agree with the others (and I am a builder) that I would not be paying that amount of money up front to anyone. You are in effect cash flowing his business.

It might pay to check the Contract in your state and see what the regulations are.

Re overages (we call them Variations) they are required to be discussed, costed and approved by you before proceeding and then become payable in the next progress claim.

Cheers

As a GC for 30 years in California, the most we can ask for is $1k down payment, even on multi-million dollar projects. Personally, I would not pay $100k before anything was built. We bill our clients on a percentage of completion.

"It might pay to check the Contract in your state and see what the regulations are."

Forgive me if you will but there's equally as many crooked government regulators as there are fly by night contractors.